Gas prices fall as summer vacation season begins

ALBANY — Gasoline prices in the Capital Region and nationwide are falling — something that almost never happens in June, when the arrival of summer vacation season normally pushes demand higher.

"Oil prices continue to be under pressure," said Patrick DeHaan, head of petroleum analysis for GasBuddy. "A lot has to do with President Trump's trade policy with China."

A prolonged trade war could slow the economies of both countries, reducing demand for oil. Inventories of crude, said DeHaan, have increased.

"Demand has been a little bit lackluster this summer," he added.

In Albany, gas prices fell 3.2 cents in the past week, according to GasBuddy, to an average price of $2.738 a gallon. They're down 8 cents over the past month and 23.3 cents down from $2.971 a gallon, the price a year ago.

Saratoga County had the lowest average price in the Capital Region, at $2.677, while gas was most expensive in Schoharie County, averaging $2.879 a gallon.

With Trump touting an agreement on trade with Mexico in recent days, DeHaan expects the price decline at the pump to slow in the next few weeks.

Still, "We're likely to see more good news at the pump than bad for the foreseeable future," DeHaan added.

AAA had predicted that highway travel over the recent Memorial Day holiday weekend would be the second-busiest on record, with a 3.5 percent increase in traffic from 2018. Only 2005 saw more travel, the group said.

Worries about the Mideast have eased after several incidents involving oil tankers earlier in the spring.

"President Trump has allowed some countries to continue buying oil from Iran, after all," DeHaan said. "That's taken a little of the pressure off."

Nationally, GasBuddy had predicted that gasoline prices would average from around $2.60 to $2.80 this summer. With the lack of a China trade deal, DeHaan expects the prices will be a bit lower, averaging $2.50 to $2.75.